[Click eStock] "SK, Excessively Undervalued... Target Price 270,000 Won"

Yuanta Securities on the 27th newly issued a 'Buy' investment opinion and a target price of 270,000 KRW for SK.

SK is expected to record annual sales of 134.239 trillion KRW and operating profit of 5.588 trillion KRW this year. Next year, operating profit is projected to reach about 8 trillion KRW. SK Materials CIC is expected to see performance growth as customer plant utilization recovers due to improvements in the upstream industry conditions and the full-scale operation of the M15 industrial gas. Additionally, SK Siltron's performance is expected to recover from next year as customer wafer inventory has turned to a declining trend.

In particular, dividend income expansion is expected due to the performance growth of the major unlisted subsidiary SK E&S. SK E&S's average dividend payout ratio over the past three years is 90%, accounting for 50-60% of SK's dividend income.

Researcher Lee Seung-woong of Yuanta Securities said, "Even considering only the value of its own business and unlisted subsidiaries, excluding the value of listed subsidiaries, the appropriate corporate value reaches 15.3 trillion KRW, indicating excessive undervaluation," and added, "We present it as the top pick within the holding company sector and strongly recommend active buying."

This content was produced with the assistance of AI translation services.